Q: § __.25(d) – 1: How are investments in third-party community development organizations considered under the community development test?
A: Similar to the lending test for retail institutions, investments in third-party community development organizations may be considered as qualified investments or as community development loans or both (provided there is no double counting), at the institution’s option, as described above in the discussion regarding 12 CFR __.22(d) and __.23(b).
This Interagency Q&A, and others, was released in July 2016.
The 2016 Q&As consolidates and supersedes all previously published “Interagency Questions and Answers Regarding Community Reinvestment,” and were noted as being effective immediately. They may be found here: http://www.ffiec.gov/cra/qnadoc.htm